As Florida drivers pay the highest for auto insurance rates in the nation, state lawmakers are looking to once again repeal Florida's No-Fault auto insurance system. Through studies and speaking to out-of-state drivers, we are l ooking into the impacts this could have on your bottom line. NO-FAULT VERSUS AT-FAULT According to the Insurance Information Institute, the difference between No-Fault versus At-Fault auto is as follows: NO-FAULT: No-fault auto insurance laws require every driver to file a claim with their own insurance company after an accident, regardless of who was at fault. In states with no-fault laws, all drivers are required to purchase personal injury protection (PIP) as part of their auto insurance policies.AT-FAULT: In at-fault insurance systems, the driver responsible for an accident is liable for damages, and their insurance covers the other party's costs. In at-fault systems, bodily injury coverage is required. It is optional in no-fault states like Florida.Under the current system, drivers are required to carry a minimum of $10,000 in both property and personal injury protection coverage. However, it severely limits the ability to file lawsuits against at-fault drivers, often leaving victims with minimal compensation after a serious accident. Additionally, the PIP system has been plagued by widespread fraud, which some insurers argue is driving up premiums for everyone.THE PROPOSED LEGISLATIONRep. Danny Alvarez (R-Dover) is sponsoring HB 1181, a bill that would eliminate the no-fault PIP system and require drivers to carry at least $25,000 in bodily injury coverage and $10,000 in property liability. Alvarez argues that, over time, moving to a fault-based system like most other states could lower premiums.I don't want to be responsible for someones rates going up when inflation is bad, and I want you to know that we are very sensitive to that, Alvarez said. That might be one of the driving forces, but overall, we believe, like other states, it will bring the rates down when you get the major source of fraud out of the system. However, Governor Ron DeSantis remains a vocal opponent. I dont see how you can say its going to be cheaper to have more robust coverage mandated on people, DeSantis said. And so thats the concern of me. I dont want to do things that are going to raise ratesINSURANCE INDUSTRY RESPONSE The Insurance Information Institute agrees. They do not support this proposed law to repeal No-Fault in Florida. "The last thing we want to see is, number one, higher rates, and number two, more uninsured motorists," said Mark Friedlander, spokesperson for the Insurance Information Institute. "The most recent report from our sister organization, the Insurance Research Council, showed one out of every five drivers does not have insurance coverage. The last thing we want to see is more drivers uninsured on the roads, which makes it unsafe for everybody."AN ATTORNEY'S PERSPECTIVE Central Florida Personal Injury Attorney Coretta Anthony-Smith also agrees. She doesn't think going from No-Fault to At-Fault would be good for Floridians, and she admits that not many other plaintiff attorneys would feel the same way. "If insurance rates go up and you have to decide over food, eggs and car insurance, you're going to pick food," Anthony-Smith said. "So that's why I personally am not in favor of it, because when I look at the big picture and I look at it in reality, I think it's great in concept. Don't get me wrong, if everybody was accountable and we were all just responsible for our own actions, I think that was great, that Utopia does not exist." OUT-OF-STATE DRIVERS' PERSPECTIVE We visited Clearwater Beach to speak to drivers who live out-of-state. Florida is only one of 12 states that currently have No-Fault auto insurance, while 38 states have At-Fault insurance. Henry Forshey lives in New Jersey. "Completely No-Fault," he said. He can see the benefits to both. "It will raise the premiums, probably higher, because they're going to have, oh, we're offering more now so we can charge more. So if you're at $4,000 grand a year, and I think I'm getting off easy at $253 a month, you know, any people are gonna be like, What do you why would you move here?" he said. Melanie Gasd is from Ohio, an At-Fault State. She and her husband only pay $1,700 in car insurance for three cars a year. She's not a fan of No-Fault insurance. "No matter what you pay for your own vehicle, and it's not even your fault. So that's not fair," Gasd said. "Because it wasn't your fault, and then your insurance goes up because someone else hit you." VETOED IN 2021Lawmakers tried to do this in 2021, however the Governor vetoed it, arguing that while the system has flaws, the proposed legislation did not adequately address the issues facing Florida drivers and could have unintended consequences.While the PIP system has flaws and Florida law regarding bad faith is deficient, SB 54 does not adequately address the current issues facing Florida drivers and may have unintended consequences DeSantis wrote in his veto letter.THE RESEARCH: THE IMPACT OF REPEALING PERSONAL INJURY PROTECTION IN FLORIDA According to a study conducted by Florida's Office of Insurance Regulation in 2021, if Florida repealed No-Fault premiums would rise overall for all drivers, no matter what coverage. "If nofault insurance is repealed in Florida, we estimate an overall increase in premiums of 13.3% for all coverages combined or $202 per car annually for the average vehicle," the executive summary read. ...read more read less